Quarterly report pursuant to Section 13 or 15(d)

Income Tax

v3.22.2
Income Tax
6 Months Ended
Jun. 30, 2022
Income Tax Disclosure [Abstract]  
Income Tax

NOTE 9. INCOME TAX

 

The Company’s effective tax rate for the three and six months ended June 30, 2022 was (17.2)% and (2.1)%, respectively. The effective tax rate for the three months ended June 30, 2021 and for the period from February 8, 2021 (inception) through June 30, 2021 was 0.0%. The Company’s effective tax rate differs from the statutory income tax rate of 21% primarily due to recording a full valuation allowance on deferred tax assets. The Company has historically calculated the provision for income taxes during interim reporting periods by applying an estimate of the annual effective tax rate for the full fiscal year to income or loss for the reporting period. The Company has used a discrete effective tax rate method to calculate taxes for the three and six months ended June 30, 2022. The Company believes that, at this time, the use of the discrete method for the three and six months ended June 30, 2022 is more appropriate than the estimated annual effective tax rate method as the estimated annual effective tax rate method is not reliable due to a high degree of uncertainty in estimating annual pretax earnings